VAT Return Adjustments

[LoopyLoo]

Hi

I have a VAT return to complete which includes
T6 EU Services
T7 EU Products
T8 EU Standard rated purchases from suppliers in EC

Previously this has been completed in Sage and manually changed when entering on HMRC website.

How do I get the "make adjustments" set up in Sage so I can change this so Sage matches entry onto HMRC website?

I have this as a template


T6 is currently set up in Sage to automatically calculate the right figures into the right boxes on the VAT return

Is there a way to do this for T7 and T8s?

[LoopyLoo]

Sorry, I am using Sage 50 Accounts Professional 2014

[brucedenney]

The standard codes for EU got extended to include T22 - T24

If an item appears on the VAT return and if it is an EC Sales or Purchase is governed by how the tax code is set up in Settings>Configuration>Tax Codes

You have set things up differently to Standard, what we need is to see those settings.

Here are the "standard" settings, perhaps you will work it out from just this.

If not post a screen shot of your config.

EU-VATCodes.png

You shouldn't need to make adjustments, everything should be in it's correct place.

[LoopyLoo]

I haven't set this up... I've come in from June to find this but I would like to correct it for my next vat return

So if I edit the invoices/transactions I have using T20-T26 this should automatically work and calculate correctly on the VAT return, is that what you are saying?

Mine currently


I do have this also if I scroll down


Could you help me get this right please?

I'm fairly new to VAT anyway, so why are they splitting products and services?

[brucedenney]

What someone has done is to attempt to set up T6 to be used "Standard Rated Purchases of Services form EU Suppliers" most people just use T24.

there are 2 ways you can approach this.

1/ You can adopt the standard. Delete T6 description and use T24 instead.
2/ You can fix the set up of T6 and continue to use T6
3/ You can fix T6 for now and use the T24 standard going forward
4/ you can do both and mix things up.

To fix the T6 configuration

Settings>Configuration>TaxCodes
select T6
Edit
Tick Box "Enable EC Code"
Select "EC Purchases"
Select "Services"
OK
Apply

I have not tested to check if this will fix things retrospectively, I suspect it will, rerun the vat return and check things are okay.

[LoopyLoo]

Thank you for the reply!

I thought the problem I had was with T7 and T8, not T6, as this is coming in on vat return on both sales and purchases (so net off), is this not correct?

As per my spreadsheet and how the codes have been set up, is it correct that on my T7 entries I should be adding this figure to box totals 2 and 4?

Why would have products and services been split with 2 different tax codes?

[brucedenney]

The behaviour you describe is "normal" I do not understand VAT law nor am I qualified to give tax advice so I really can't explain why, all I can say is, that is what happens "normally" in Sage.

I can see your point, it looks strange to me, it ignores the amount of VAT you are charged and automatically applies 20% which seems strange.

I am assuming Sage know what they are doing and are handling the transaction correctly.


As for the separation of Services and Products this is needed for the EC Sales List.

[LoopyLoo]

Thanks Bruce!